2nd Circ. Broadens Lenders' Debt Collection Liabilities

Law360, New York (November 13, 2013, 8:39 PM EST) -- The Second Circuit on Wednesday clarified under what circumstances consumer creditors forfeit immunity from the Fair Debt Collection Practices Act by using a third party to masquerade as their debt collector, reviving a putative class action against three affiliated mortgage servicers.

A panel majority said that consumer finance outfit The Money Store and two affiliates had allegedly cast their law firm Moss Codilis Stawiarski Morris Schneider & Prior LLP as their debt collector in thousands of borrower letters when in fact The Money Store itself controlled...
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